Introduction
Bank reconciliation is a process whereby you are matching your accounting records with the bank record. At a particular point in time, your accounting record may or may not match the bank record. This is due to the time difference between recording transactions in the company’s books of account and the bank’s transaction postings. At the end of the month or at a particular time interval agreed to with the bank, the bank sends a bank statement to the company.
The company compares the bank statement with the transactions recorded in its books of account. This process may bring up the true balance with the bank, a transaction the company failed to record, or a transaction recorded by the bank that does not pertain to the company. Because of these differences the bank account as per the books of accounts may not exactly match with the bank statement.
When the company passes these entries, the main bank account balance will agree with the bank balance as per bank.
Important acronyms
BRS is Bank REconciliation Statement.
MBS Manual Bank Reconciliation Statement
EBRS is Electronic Bank Statement
BRS and MBS are one and same, these terms are used synonymously. In this document we are going to cover BRS/MBS but not EBS.
In case if bank provides the bank statement manually or physical copy, we use manual bank reconciliation. Here we need to do the reconciliation for each transaction by transaction manually.
In case if bank provides the bank statement in electronic form, we use Electronic bank statement. In this case we can directly uploaded the statement in SAP and reconciliation happens automatically based on the configuration and predefined parameters.
Prerequisites: Before configuring Bank reconciliation statement/Manual Bank Statement, we need GL Accounts, House Bank and Check lots
Configuration
1.2 Define posting keys and posting rules for check deposit
Via Menus | IMG-->Financial accounting-->Bank accounting-->Business transactions--> Check deposit -->Define posting keys and posting rules for check deposit |
Via Transaction Code | SPRO |
Provide Chart of Accounts
Click on Save
Double click on "Assign Accounts to Account symbols"
Click on New Entries and update below details and press Enter
Alternatively, you can mask the GL accounts (e.g +++++0 for main bank account )
Click on Save
Double click on "Create Keys for Posting Rules"
Click on New Entries update below details and press Enter
Double click on "Define Posting rules"
Click on New Entries update below details and press Enter
Click on Right Arrow and update below information
Click on Right Arrow and update below information
Click on Right Arrow and update below information
Click Save
1.3 Create and assign Business Transactions
Via Menus | IMG--> Financial Accounting --> Bank Accountingà Business Transaction --> Check Deposit --> Create and assign Business Transactions |
Via Transaction Code | OT53 |
Click on New Entries update below details
Click on Save
1.4 Define Variants for Check deposit
Via Menus | IMG--> Financial Accounting --> Bank Accounting -->Business Transaction --> Check Deposit --> Define Variant for Check Deposit |
Via Transaction Code | OT45 |
Place the cursor on Standard and click on Copy
And give Variant name as 1009
Click on 3-digit check number and click on Delete.
Similarly, delete 8-digit bank key and invoiced amount
Double click on “10-digit check number” under “Possible fields” as below
And change the length to 06
Variant will look like one below:
Click Save and change description as below
Click Save and Click on activate Variant
1.5 Create and assign Business Transactions
Via Menus | IMG--> Financial Accounting -->Bank Accounting--> Business Transaction --> Payment Transactions-->Manual Bank Statement -->Create and assign Business Transactions |
Via Transaction Code | OT52 |
Click on New Entries update below details
Click on Save
Note the following when assigning the business transactions:
The +/- sign
You can further differentiate external transactions by setting "" or "-" signs for them. If the external transaction code has a "+" sign in front of it, it is a cash receipt; likewise, a "-" sign represents a cash disbursement.
Interpretation algorithm
In addition to specifying posting rules, you must also specify which interpretation algorithm should be used. The interpretation algorithm determines whether (and with which algorithms) the system should search for clearing information.
1.6 Create Variants for Manual Bank Statement
Via Menus | IMG--> Financial Accounting --> Bank Accounting --> Business Transaction --> Payment Transactions --> Manual Bank Statement--> Create and assign Business Transactions |
Via Transaction Code | OT43 |
Place the cursor on Standard and click on Copy
Change the description
Click Save and Click on Activate Variant.
2 Check Deposit Process Flow
2.1 Sales invoice posting
Via Menus | Accounting --> Financial Accounting --> Customers --> Document Entry --> Invoice |
Via Transaction Code | FB70 |
2.2 Manual Check Deposit
Via Menus | Accounting-->Financial Accounting --> Banks -->Incomings --> Check Deposit --> Manual Entry |
Via Transaction Code | FF68 |
Select Settings-->Specifications and provide details
Press Enter and provide below details
Press Enter
Click on Save
Executing Batch Input
Go to Batch input session (SM35) as below
Select your Session name and click on "Process"
Select and Click on "Display Errors Only" , then select exist session
Go to FBL5N and see whether Customer open item is cleared
Double click on Document type DZ to see document
2.3 Manual Bank Statement
Via Menus | Accounting -->Financial Accounting --> Banks -->Incomings --> Bank Statement --> Manual Entry |
Via Transaction Code | FF67 |
Select Settings --> Specifications and provide below details
Press Enter and provide below details
Press Enter
Click on Save
System Message : Statement/List Saved
Click on Save again
System Message : Statement/List Posted
Executing Batch Input
Go to Batch input session (SM35) as below
Select Session name and click on Process
Select and Click on "Display Errors Only", and click on Process . then click on Exist session
Go to FBL3N and see the posting with Document type SA
Double Click on SA document type to see document posted
3 Check Payment Transactions flow
3.1 Vendor Invoice Posting
Via Menus | Accounting --> Financial Accounting --> Accounts Payables --> Document Entry --> Invoice |
Via Transaction Code | FB60 |
3.2 Vendor Outgoing Payment
Via Menus | Accounting --> Financial Accounting --> Accounts Payable --> Outgoing Payment --> Post |
Via Transaction Code | F-58 or F110 |
Check number 100502 issued to Vendor . If you use F-53, then go to FCH5 and issues Check manually.
3.4 Manual Statement
Via Menus | Accounting-->Financial Accounting -->BanksàIncomings --> Bank Statement --> Manual Entry |
Via Transaction Code | FF67 |
Go to Settings --> Specifications and Provide below information
Press Enter and provide below details
Press Enter
Click on Save
System Message : Statement/List Saved
Click on Save again
System Message : Statement/List Posted
Executing Batch Input Session (SM35) as below:
Select Session name and click on Process
Select "Display errors Only"and Click on Process, then select exist session
Go to FBL3N and Observe that Citibank Check issue account is cleared
Double click on Document type SA and see below document
3.5 Posting Bank Charges
Via Menus | Accounting -->Financial Accounting --> Banks-->Incomings --> Bank Statement --> Manual Entry |
Via Transaction Code | FF67 |
Note: Make sure that the status of text field for Bank charges account as optional, if it is mandatory, you are going to get an error while procession the bank charges.
Click on New Statement
Opening balance will be defaulted by the system and fill the closing balance. In this example, we want to post 1500 as bank charges. So closing balance will be
45000-43500=1500.
Press Enter and provide below details
Note that Bank charges amount should be entered with –(minus) sign.
Click on Save
Executing Batch Input Session as below
Select Session name and click on Process
Select "Display Errors Only" and Click on Process, then select exist session
Go to FBL3N/FS10N and observe document posting in Bank charges account
Double Click on document and select overview to see document
Note1: To understand what are errors encountered during the bank statement procession, you can use transaction FEBA or FEBAN.
Note2: In case if you not sure about the opening balance of the statement to be entered in FF67, you can go to FEBA/FEBAN and see what was the closing balance of last statement. The closing balance of last statement becomes opening balance of the current statement.
Note3: There are no standard reports available on BRS in SAP similar to one given below:
Bank Statement balance xxxxxxxxx
+ Checks Deposited but not cleared xxxxxx
- Checks Issues but not cleared xxxxxx
Book Balance xxxxxxxx
If you want a report like this, you may have to develop this report using ABAP development.